If you’re preparing for or going through a divorce in Tennessee, feeling confused is understandable. Often, couples feel unsure about how to divide assets, and there is especially confusion around what to do with their marital home.
When selling a marital home is a must
The person staying in the marital home is typically the same individual paying for it. If you or your former spouse can’t afford a mortgage, selling the marital home may be the only option.
A major advantage of selling
A divorce can take up considerable time and energy. However, pushing through the stress of selling your home can be beneficial. If you’re not already divorced, selling a home as a married person means qualifying for the Home Sale Tax Exclusion. This tax rule allows a married individual to avoid capital gains taxes up to a value of $500,000. Selling the marital home as a divorced person only allows you to claim up to $250,000 in capital gains tax exclusions.
Drawbacks of selling the marital home
The main potential disadvantage of selling marital homes involves a couple’s shared children. While adults are often more used to coping with changes, not all children have this ability. Moving out of their childhood home can be a major source of stress for your children, especially if they have grown attached to it and have memories there. Selling a marital property is also not beneficial when the housing market is down, which can lead to less post-sale profits.
Buying or selling a home is a major decision. To make things easier, you and your spouse should work together as much as possible because it’s helpful when you and your ex-spouse can agree about the future of your formerly shared home.